AT1 Holders Wiped Out in UBS Deal Are Angry as Backstop Ends (1)

Credit Suisse additional tier 1 bondholders are furious after UBS Group AGsaid it won’t need state support for its rescue deal, arguing that their wiped out notes should have been spared.

They say that if the government’s backstop was unnecessary, then so too was the historic writedown of about $17 billion of Credit Suisse’s AT1 notes, according to several investors who asked not to be identified because some of them are involved in ongoing litigation against Swiss authorities.

UBS said Friday it had terminated a 9 billion franc ($10.3 billion) agreement with the Swiss government to cover losses it ...